Chapter 6: The Changing Global Power Balance – Challenges for European Firms: Commentary Available to Purchase

Managers of multinationals must understand the macro situation of the global economy (‘the big picture’) to design firm-level strategy. The interactions between global, national, and firm levels are crucial in determining strategy for the new situation in the global economy dominated by a fracture between a ‘China’ camp and a ‘Western’ camp centred on the USA. International business theory and its application in practice excel at multi-level analysis.

This commentary examines first the global system, then the methods by which key nations project their national systems regionally and globally, and the ways in which these changes affect the global strategies of multinational enterprises with a focus on European firms.